Soft Drinks

Topics: Soft drink, Coca-Cola, PepsiCo Pages: 131 (40763 words) Published: March 16, 2013
Breaking Down the Chain: A Guide to the soft drink industry

aCknowleDgments this report was developed to provide a detailed understanding of how the soft drink industry works, outlining the steps involved in producing, distributing, and marketing soft drinks and exploring how the industry has responded to recent efforts to impose taxes on sugar-sweetened beverages in particular. the report was prepared by sierra services, inc., in collaboration with the supply Chain Management Center (sCMC) at rutgers university – newark and new Brunswick. the authors wish to thank kristen Condrat for her outstanding support in all phases of preparing this report, including literature review and identifying source documents, writing, data analysis, editing, and final review. special thanks also goes to susanne Viscarra, who provided copyediting services. Christine fry, Carrie spector, kim Arroyo Williamson, and Ayela Mujeeb of Public health Law & Policy prepared the report for publication. PhLP would like to thank roberta friedman of the yale rudd Center for food Policy and obesity for expert review. for questions or comments regarding this report, please contact the supervising professors: Jerome D. Williams, PhD Prudential Chair in Business and research director – the Center for urban entrepreneurship & economic development (Cueed), rutgers Business school – newark and new Brunswick, Management and Global Business department 1 Washington Park – room 1040 newark, nJ 07102 Phone: 973-353-3682 fax: 973-353-5427 Paul Goldsworthy senior industry Project Manager department of supply Chain Management & Marketing sciences rutgers Business school Phone: 908-798-0908 Design: Karen Parry | Black Graphics The National Policy & Legal Analysis Network to Prevent Childhood Obesity (NPLAN) is a project of Public Health Law & Policy (PHLP). PHLP is a nonprofit organization that provides legal information on matters relating to public health. The legal information in this document does not constitute legal advice or legal representation. For legal advice, readers should consult a lawyer in their state. Support for this document was provided by a grant from the Robert Wood Johnson Foundation. © 2011 Public Health Law & Policy


Table of

exeCutive summary market leaders soft Drink inDustry overview earnings Product segments and major market Brands major markets future outlook Demand Determinates overview of the three major Players the Coca-Cola Company PepsiCo, inc. Dr Pepper snapple group suPPly Chain overview operating model syrup Producers Bottlers Distribution Channels marketing overview 2008 federal trade Commission study Children’s food and Beverage advertising initiative marketing strategies PoliCy anD legislative aCtions in resPonse to the ssB tax Current events regarding ssB taxes Public support for ssB taxes soft Drink industry’s internal and external responses to ssB taxes ConClusion

5 7 7 8 8 9 10 11 12 12 12 13 15 15 18 19 20 21 22 28 32 73 73 75 75 81 |

Breaking down the Chain: A Guide to the soft drink industry


aPPenDix appendix 1: Coca-Cola north america’s CBBB Pledge appendix 2: PepsiCo’s CBBB Pledge appendix 3: Product and Brand list for the soft Drink industry leaders and top three Private-label Brands appendix 4: incidence of Purchasing soft Drinks by Promotion type, by age enDnotes

81 82 86 90 92 93


Breaking down the Chain: A Guide to the soft drink industry |



this report was developed to give public health advocates a window into the soft drink industry and reveal opportunities for intervention at various points of the supply chain, from production and distribution to marketing and sales. the report covers the main product lines of the industry: carbonated soft drinks, fruit beverages, bottled water,...
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